China Development Bank Asked To Back $1.16 Billion In Loans To Set Yingli Green Energy Upright

Almost one year ago in its annual report, troubled Chinese solar panel manufacturer Yingli Green Energy told its investors the company was facing troubled times:

“Facts and circumstances including recurring losses, negative working capital, net cash outflows, and uncertainties on the repayment of the debts raise substantial doubt about our ability to continue as a going concern.”

Matters have not improved this year as far as we can tell, but this blunt call for help has now been heard by the China Banking Regulatory Commission, the supervising entity for the country’s banking industry. It has asked China Development Bank Corp. to ensure a whopping $1.16 billion (7.5 billion yuan) in loans issued to Yingli to help pay off long-held debt and restructure, report PV-TechandBloomberg.

Once the world’s biggest solar manufacturer, Yingli reported a total debt of $1.9 billion at the end of the third quarter.

On its website, the company reports shipping more than 60 million solar panels representing 14 GW to more than 90 countries, including Germany, Spain, Italy, Greece, France, South Korea, China, Japan, Brazil, Australia, South Africa, Mexico, and the United States.

However, declining prices without adequate revenue have generated hard times, leading to cost-cutting measures and employee layoffs.

Bloomberg reports an oversupply of solar panels has seen prices tumble by almost 70% since 2010.

Trina Solar Ltd. has now surpassed Yingli as the industry’s leading manufacturer, as Yingli leadership negotiates with creditors and lending entities.

is a writer, producer, and director. Meyers is editor and site director of Green Building Elements, a contributor to CleanTechnica, and founder of Green Streets MediaTrain, a communications connection and eLearning hub. As an independent producer, he's been involved in the development, production and distribution of television and distance learning programs for both the education industry and corporate sector. He also is an avid gardener and loves sustainable innovation.

Advertisement

Our EV Driver Report

Electric Vehicle Reviews

Electric Vehicle News

Solar Energy News

Tesla News

The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by, and do not necessarily represent the views of Sustainable Enterprises Media, Inc., its owners, sponsors, affiliates, or subsidiaries.